Inotiv Bankruptcy Court Confirms Reorganization Plan, Existing Equity to Be Canceled

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July 16, 2026

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The United States Bankruptcy Court for the Southern District of Texas confirmed the prepackaged Chapter 11 reorganization plan for Inotiv, Inc. and its affiliated debtors on July 14, 2026, marking a decisive step toward the contract research organization's exit from bankruptcy as a private entity.

Plan confirmation clears path to emergence

Inotiv and certain subsidiaries filed voluntary Chapter 11 petitions on June 3, 2026, to implement a prepackaged restructuring. The confirmed plan, which incorporates documents filed as part of a plan supplement, now awaits the satisfaction or waiver of all conditions precedent before the plan effective date arrives. Until then, the company continues operating as a debtor-in-possession under bankruptcy court supervision.

The plan's material terms were previously described in Inotiv's June 3, 2026, Form 8-K filing. Under the confirmed structure, the reorganized company intends to issue 5.1 million shares of new equity interests to holders of prepetition loans, secured notes, and convertible notes, along with warrants exercisable for an additional 630,337 new equity interests.

Existing shareholders face total loss

As of July 14, 2026, Inotiv had approximately 35.2 million common shares outstanding. The confirmed plan provides that all existing common shares and other equity interests will be canceled on the effective date, with current equity holders receiving no distribution, property, or other value. The company stated explicitly that it expects holders of existing equity interests to experience a total loss on their investment.

Trading in Inotiv shares had already been suspended on Nasdaq at the opening of business on June 11, 2026, after which the stock began trading over the counter under the symbol NOTVQ. Nasdaq filed a Form 25 with the SEC on July 10, 2026, to formally delist the shares, a process that becomes effective 10 calendar days after filing. The company expects to emerge from Chapter 11 as a private entity.

Additional information available

Court documents and additional details about the Chapter 11 cases are accessible through the claims and noticing agent, Kroll Restructuring Administration LLC, at the restructuring website or by contacting Kroll directly. The company cautioned that trading in its securities during the bankruptcy remains highly speculative and that prices may bear little relationship to any actual recovery.

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